Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2014
 

Sales and Use Tax Annotations


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L

335.0000 LEASES OF MOBILE TRANSPORTATION EQUIPMENT— Regulation 1661

Annotation 335.0089

335.0089 Truck Cranes as Mobile Transportation Equipment. Whether certain "truck cranes" and other mobile units are properly classified as mobile transportation equipment depends on whether or not the particular unit is designed to be moved substantial distances such as over the highways under its own power, or by being pulled behind a tractor, or instead is limited by its design to be used in the confines of a limited area such as a construction site, loading area, etc. Merely because a particular leased unit is only used by a lessee in a limited area does not take the unit out of the definition of mobile transportation equipment if in fact the unit is designed to move property or persons substantial distances. Following is the application of these rules to specific items:

(1) Speed Swing, Trak-Kleener, Pipewood Hauler and Forester appear to be designed for limited movement within the confines of a limited area, i.e., construction site or logging site, and are not designed for highway use. Accordingly, these items are not mobile transportation equipment.

(2) Truck-Krane-Model 90TKLS and Model 60TK and Wrecking Crane Model 200 appear to be designed for movement on the highway. Merely because the travel of the Truck Krane is apparently limited to 75 miles at a time does not exclude that travel from the definition of substantial distances. It is clearly designed for movement on the highway notwithstanding the fact that special highway permits are required.

(3) Based on the following stated facts, the Multikrane does not appear to be mobile transportation equipment:

(a) It does not transport persons or property for substantial distances.

(b) It does not have a speedometer or odometer.

(c) Its tires are suitable for rough terrain only.

(d) It is not normally licensed for use on public highways.

(e) It is normally transported from location to location of substantial distances by common carrier or customer vehicle. 6/10/76.